The Inflation Rates and Price Increase Tendency in Poland

According to the quick estimate of the Central Statistical Office (GUS), the inflation rates in Poland in July 2021 was 5 %, a level that has not been seen in Poland for over ten years. According to economist Marek Zuber, such a high increase in the prices of goods and services may repeat itself within a few months. As Zuber outlined, inflation at 5 % and more can be seen several times this year.

This rise in inflation that can be seen now is mainly due to supply factors – rising costs, for example. But there is also an increased money supply – printing money in Poland. Now post-covid consumption has just begun. In the last several months, Polish have not bought much – there were months when they bought less than in the similar months of the previous year.

The Impact of Higher Inflation Rates:

So, if such a situation continues, the 5% inflation rates in the next several months will be considered low.

On Friday, Prime Minister Mateusz Morawiecki also compared the situation with the one in 2012. He outlined that the inflation hovers above 4 % in 2021, however, wages in the national economy increased by 9.8 %, and in 2012 inflation was 2.8 % and growth salaries in one of the months were recorded at 2.7 %.

One of the actions that the Monetary Policy Council may take in connection with the rapid increase in prices is an increase in inflation rates and interest rates. In Poland, interest rates are currently at their lowest level in history. Last year, the Monetary Policy Council cut interest rates three times: on March 17, April 8, and May 28. On the other hand, the last time the MPC raised interest rates was on May 10, 2012, which caused a negative impact on inflation rates as well.

The prime minister referred to the analyses of the National Bank of Poland. According to the central path of the NBP forecast, the price increase in 2021 will be 4.2% and 2022 – 3.4 %. The inflation should be in a gradual downward trend, so there shall be better information in a few months.

Implications for Banking and Business

Developments in the Polish banking sector affect businesses operating in the country in several ways. Access to corporate banking services, credit availability, deposit rates, and payment infrastructure are all critical factors for companies — whether established Polish firms or foreign-owned entities entering the market.

For foreign entrepreneurs setting up operations in Poland, choosing the right banking partner is a strategic decision. Major Polish banks including mBank, ING Bank Śląski, Bank Millennium, PKO BP, and Santander Poland offer varying levels of service for international clients, including English-language online banking, multicurrency accounts, and dedicated relationship managers for corporate clients.

The Polish banking market is well-regulated by the KNF (Financial Supervision Authority) and participates in the EU deposit guarantee scheme (BFG — Bank Guarantee Fund), providing deposit protection up to EUR 100,000 per depositor per institution. This regulatory framework provides stability and confidence for businesses maintaining corporate funds in Polish banks.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our bank account opening services, or contact us for a free consultation.